Summaries of health policy coverage from major news organizations

Insurers Ready Merger Deals After Health Law, Managed Care Lull

The largest U.S. insurers -- UnitedHealth, Anthem, Aetna, Cigna and Humana -- are all looking at combinations for teaming up, but any move faces significant antitrust scrutiny. In the meantime, stocks of UnitedHealth surge on Aetna takeover speculation, with Aetna CEO Mark Bertolini in line to make up to $131 million if he loses his job because of a merger.

The Wall Street Journal:
Insurers Playing A Game Of Thrones
Big U.S. insurers are courting one another for possible multibillion-dollar deals. How they pair off could have significant implications for the managed-care industry, its individual and corporate customers, and U.S. medical providers. Each potential target has strengths in different parts of the managed-care puzzle. (Weaver, 6/16)

Bloomberg News:
Five-Way Dating Drama Spices Up Staid Health Insurers
Deal drama is heating up the world of health insurance. The biggest U.S. providers — UnitedHealth Group, Anthem, Aetna, Cigna and Humana — are all looking at possible combinations. After a two-year lull in managed-care dealmaking, buyers are feeling more comfortable with the implications of the Patient Protection and Affordable Care Act and ready to put cash to work on deals. Humana — with a market value of $30 billion — is the most frequently mentioned target, but where there's one deal, another could follow. No one wants to be left without a partner, knowing that in the end, just three of the big five will likely be left standing. (Sutherland, 6/16)

Modern Healthcare:
Antitrust Scrutiny, Logistics Would Complicate Any Large-Scale Insurer Deal
Aetna, Anthem, Cigna Corp. and UnitedHealth Group have headlined a frenzied round of consolidation speculation among health insurers. But many of the rumored mergers would face significant external and internal hurdles. The sheer size of combined insurance companies would immediately prompt strict review from the Department of Justice, which investigates insurance antitrust cases. Any deal also would be costly and would complicate some companies' stated long-term goals. (Herman, 6/17)

The Minneapolis Star-Tribune:
UnitedHealth Stock Rises On Report Of Aetna Bid
Merger speculation is sweeping through the insurance sector, which stock analysts say is ripe for consolidation. Shares of Minnetonka’s UnitedHealth Group jumped 2 percent Tuesday in reaction to a Wall Street Journal report that it’s made an overture to competitor Aetna. That followed speculation in recent days about several other big health insurers. (Carlson, 6/16)

The Wall Street Journal:
Humana Won’t Get Lost In Merger Shuffle
All of a sudden, Humana isn’t the only health insurer available for sale. That is good news for its would-be buyers, although it doesn’t have to be calamitous for Humana. The U.S. managed-care industry is in a merger-and-acquisitions frenzy as the five largest insurers— UnitedHealth, Anthem, Aetna, Cigna, and Humana—explore a series of possible combinations, according to The Wall Street Journal. (Grant, 6/16)

Bloomberg Business:
Aetna CEO's $131M Parachute Biggest Among Health Targets
Aetna Inc. CEO Mark Bertolini has the most to gain among top executives at the three U.S. health insurers seen as targets in a potential wave of industry consolidation. Bertolini could receive $131.3 million should he lose his job in a takeover, according to data compiled by Bloomberg. Cigna Corp. Chief Executive Officer David Cordani would get $58.7 million, while Humana Inc. CEO Bruce Broussard’s so-called golden parachute is valued at $26.1 million. The five biggest publicly traded insurers are all eyeing potential combinations after a two-year lull in big managed-care deals. Anthem Inc. has explored a takeover of Cigna and Humana, and Aetna and Cigna have considered buying Humana, Bloomberg has reported. The Wall Street Journal has said UnitedHealth Group Inc. might be interested in Aetna or Cigna. (Tracer, Melin and Melby, 6/17)